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Estimating potential output and the output gap for the euro area: a model-based production function approach

✍ Scribed by Tommaso Proietti; Alberto Musso; Thomas Westermann


Publisher
Springer-Verlag
Year
2006
Tongue
English
Weight
454 KB
Volume
33
Category
Article
ISSN
0377-7332

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## Abstract We develop a new version of the production function (PF) approach for estimating the output gap of the euro area. Assuming a CES (constant elasticity of substitution) technology, our model does not call for any (often imprecise) measure of the capital stock and improves the estimation o